97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2586

 

Introduced 1/18/2012, by Sen. John J. Cullerton

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 115/12  from Ch. 85, par. 616

    Amends the State Revenue Sharing Act. Makes a technical change in a Section concerning the Personal Property Tax Replacement Fund.


LRB097 16067 PJG 61220 b

 

 

A BILL FOR

 

SB2586LRB097 16067 PJG 61220 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Revenue Sharing Act is amended by
5changing Section 12 as follows:
 
6    (30 ILCS 115/12)  (from Ch. 85, par. 616)
7    Sec. 12. Personal Property Tax Replacement Fund. There is
8hereby created the the Personal Property Tax Replacement Fund,
9a special fund in the State Treasury into which shall be paid
10all revenue realized:
11    (a) all amounts realized from the additional personal
12property tax replacement income tax imposed by subsections (c)
13and (d) of Section 201 of the Illinois Income Tax Act, except
14for those amounts deposited into the Income Tax Refund Fund
15pursuant to subsection (c) of Section 901 of the Illinois
16Income Tax Act; and
17    (b) all amounts realized from the additional personal
18property replacement invested capital taxes imposed by Section
192a.1 of the Messages Tax Act, Section 2a.1 of the Gas Revenue
20Tax Act, Section 2a.1 of the Public Utilities Revenue Act, and
21Section 3 of the Water Company Invested Capital Tax Act, and
22amounts payable to the Department of Revenue under the
23Telecommunications Infrastructure Maintenance Fee Act.

 

 

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1    As soon as may be after the end of each month, the
2Department of Revenue shall certify to the Treasurer and the
3Comptroller the amount of all refunds paid out of the General
4Revenue Fund through the preceding month on account of
5overpayment of liability on taxes paid into the Personal
6Property Tax Replacement Fund. Upon receipt of such
7certification, the Treasurer and the Comptroller shall
8transfer the amount so certified from the Personal Property Tax
9Replacement Fund into the General Revenue Fund.
10    The payments of revenue into the Personal Property Tax
11Replacement Fund shall be used exclusively for distribution to
12taxing districts, regional offices and officials for fiscal
13year 2012, and local officials as provided in this Section and
14in the School Code, payment of the ordinary and contingent
15expenses of the Property Tax Appeal Board, payment of the
16expenses of the Department of Revenue incurred in administering
17the collection and distribution of monies paid into the
18Personal Property Tax Replacement Fund and transfers due to
19refunds to taxpayers for overpayment of liability for taxes
20paid into the Personal Property Tax Replacement Fund.
21    As soon as may be after the effective date of this
22amendatory Act of 1980, the Department of Revenue shall certify
23to the Treasurer the amount of net replacement revenue paid
24into the General Revenue Fund prior to that effective date from
25the additional tax imposed by Section 2a.1 of the Messages Tax
26Act; Section 2a.1 of the Gas Revenue Tax Act; Section 2a.1 of

 

 

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1the Public Utilities Revenue Act; Section 3 of the Water
2Company Invested Capital Tax Act; amounts collected by the
3Department of Revenue under the Telecommunications
4Infrastructure Maintenance Fee Act; and the additional
5personal property tax replacement income tax imposed by the
6Illinois Income Tax Act, as amended by Public Act 81-1st
7Special Session-1. Net replacement revenue shall be defined as
8the total amount paid into and remaining in the General Revenue
9Fund as a result of those Acts minus the amount outstanding and
10obligated from the General Revenue Fund in state vouchers or
11warrants prior to the effective date of this amendatory Act of
121980 as refunds to taxpayers for overpayment of liability under
13those Acts.
14    All interest earned by monies accumulated in the Personal
15Property Tax Replacement Fund shall be deposited in such Fund.
16All amounts allocated pursuant to this Section are appropriated
17on a continuing basis.
18    Prior to December 31, 1980, as soon as may be after the end
19of each quarter beginning with the quarter ending December 31,
201979, and on and after December 31, 1980, as soon as may be
21after January 1, March 1, April 1, May 1, July 1, August 1,
22October 1 and December 1 of each year, the Department of
23Revenue shall allocate to each taxing district as defined in
24Section 1-150 of the Property Tax Code, in accordance with the
25provisions of paragraph (2) of this Section the portion of the
26funds held in the Personal Property Tax Replacement Fund which

 

 

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1is required to be distributed, as provided in paragraph (1),
2for each quarter. Provided, however, under no circumstances
3shall any taxing district during each of the first two years of
4distribution of the taxes imposed by this amendatory Act of
51979 be entitled to an annual allocation which is less than the
6funds such taxing district collected from the 1978 personal
7property tax. Provided further that under no circumstances
8shall any taxing district during the third year of distribution
9of the taxes imposed by this amendatory Act of 1979 receive
10less than 60% of the funds such taxing district collected from
11the 1978 personal property tax. In the event that the total of
12the allocations made as above provided for all taxing
13districts, during either of such 3 years, exceeds the amount
14available for distribution the allocation of each taxing
15district shall be proportionately reduced. Except as provided
16in Section 13 of this Act, the Department shall then certify,
17pursuant to appropriation, such allocations to the State
18Comptroller who shall pay over to the several taxing districts
19the respective amounts allocated to them.
20    Any township which receives an allocation based in whole or
21in part upon personal property taxes which it levied pursuant
22to Section 6-507 or 6-512 of the Illinois Highway Code and
23which was previously required to be paid over to a municipality
24shall immediately pay over to that municipality a proportionate
25share of the personal property replacement funds which such
26township receives.

 

 

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1    Any municipality or township, other than a municipality
2with a population in excess of 500,000, which receives an
3allocation based in whole or in part on personal property taxes
4which it levied pursuant to Sections 3-1, 3-4 and 3-6 of the
5Illinois Local Library Act and which was previously required to
6be paid over to a public library shall immediately pay over to
7that library a proportionate share of the personal property tax
8replacement funds which such municipality or township
9receives; provided that if such a public library has converted
10to a library organized under The Illinois Public Library
11District Act, regardless of whether such conversion has
12occurred on, after or before January 1, 1988, such
13proportionate share shall be immediately paid over to the
14library district which maintains and operates the library.
15However, any library that has converted prior to January 1,
161988, and which hitherto has not received the personal property
17tax replacement funds, shall receive such funds commencing on
18January 1, 1988.
19    Any township which receives an allocation based in whole or
20in part on personal property taxes which it levied pursuant to
21Section 1c of the Public Graveyards Act and which taxes were
22previously required to be paid over to or used for such public
23cemetery or cemeteries shall immediately pay over to or use for
24such public cemetery or cemeteries a proportionate share of the
25personal property tax replacement funds which the township
26receives.

 

 

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1    Any taxing district which receives an allocation based in
2whole or in part upon personal property taxes which it levied
3for another governmental body or school district in Cook County
4in 1976 or for another governmental body or school district in
5the remainder of the State in 1977 shall immediately pay over
6to that governmental body or school district the amount of
7personal property replacement funds which such governmental
8body or school district would receive directly under the
9provisions of paragraph (2) of this Section, had it levied its
10own taxes.
11        (1) The portion of the Personal Property Tax
12    Replacement Fund required to be distributed as of the time
13    allocation is required to be made shall be the amount
14    available in such Fund as of the time allocation is
15    required to be made.
16        The amount available for distribution shall be the
17    total amount in the fund at such time minus the necessary
18    administrative and other authorized expenses as limited by
19    the appropriation and the amount determined by: (a) $2.8
20    million for fiscal year 1981; (b) for fiscal year 1982,
21    .54% of the funds distributed from the fund during the
22    preceding fiscal year; (c) for fiscal year 1983 through
23    fiscal year 1988, .54% of the funds distributed from the
24    fund during the preceding fiscal year less .02% of such
25    fund for fiscal year 1983 and less .02% of such funds for
26    each fiscal year thereafter; (d) for fiscal year 1989

 

 

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1    through fiscal year 2011 no more than 105% of the actual
2    administrative expenses of the prior fiscal year; (e) for
3    fiscal year 2012 and beyond, a sufficient amount to pay (i)
4    stipends, additional compensation, salary reimbursements,
5    and other amounts directed to be paid out of this Fund for
6    local officials as authorized or required by statute and
7    (ii) no more than 105% of the actual administrative
8    expenses of the prior fiscal year, including payment of the
9    ordinary and contingent expenses of the Property Tax Appeal
10    Board and payment of the expenses of the Department of
11    Revenue incurred in administering the collection and
12    distribution of moneys paid into the Fund; or (f) for
13    fiscal year 2012 only, a sufficient amount to pay stipends,
14    additional compensation, salary reimbursements, and other
15    amounts directed to be paid out of this Fund for regional
16    offices and officials as authorized or required by statute.
17    Such portion of the fund shall be determined after the
18    transfer into the General Revenue Fund due to refunds, if
19    any, paid from the General Revenue Fund during the
20    preceding quarter. If at any time, for any reason, there is
21    insufficient amount in the Personal Property Tax
22    Replacement Fund for payments for regional offices and
23    officials or local officials or payment of costs of
24    administration or for transfers due to refunds at the end
25    of any particular month, the amount of such insufficiency
26    shall be carried over for the purposes of payments for

 

 

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1    regional offices and officials, local officials, transfers
2    into the General Revenue Fund, and costs of administration
3    to the following month or months. Net replacement revenue
4    held, and defined above, shall be transferred by the
5    Treasurer and Comptroller to the Personal Property Tax
6    Replacement Fund within 10 days of such certification.
7        (2) Each quarterly allocation shall first be
8    apportioned in the following manner: 51.65% for taxing
9    districts in Cook County and 48.35% for taxing districts in
10    the remainder of the State.
11    The Personal Property Replacement Ratio of each taxing
12district outside Cook County shall be the ratio which the Tax
13Base of that taxing district bears to the Downstate Tax Base.
14The Tax Base of each taxing district outside of Cook County is
15the personal property tax collections for that taxing district
16for the 1977 tax year. The Downstate Tax Base is the personal
17property tax collections for all taxing districts in the State
18outside of Cook County for the 1977 tax year. The Department of
19Revenue shall have authority to review for accuracy and
20completeness the personal property tax collections for each
21taxing district outside Cook County for the 1977 tax year.
22    The Personal Property Replacement Ratio of each Cook County
23taxing district shall be the ratio which the Tax Base of that
24taxing district bears to the Cook County Tax Base. The Tax Base
25of each Cook County taxing district is the personal property
26tax collections for that taxing district for the 1976 tax year.

 

 

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1The Cook County Tax Base is the personal property tax
2collections for all taxing districts in Cook County for the
31976 tax year. The Department of Revenue shall have authority
4to review for accuracy and completeness the personal property
5tax collections for each taxing district within Cook County for
6the 1976 tax year.
7    For all purposes of this Section 12, amounts paid to a
8taxing district for such tax years as may be applicable by a
9foreign corporation under the provisions of Section 7-202 of
10the Public Utilities Act, as amended, shall be deemed to be
11personal property taxes collected by such taxing district for
12such tax years as may be applicable. The Director shall
13determine from the Illinois Commerce Commission, for any tax
14year as may be applicable, the amounts so paid by any such
15foreign corporation to any and all taxing districts. The
16Illinois Commerce Commission shall furnish such information to
17the Director. For all purposes of this Section 12, the Director
18shall deem such amounts to be collected personal property taxes
19of each such taxing district for the applicable tax year or
20years.
21    Taxing districts located both in Cook County and in one or
22more other counties shall receive both a Cook County allocation
23and a Downstate allocation determined in the same way as all
24other taxing districts.
25    If any taxing district in existence on July 1, 1979 ceases
26to exist, or discontinues its operations, its Tax Base shall

 

 

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1thereafter be deemed to be zero. If the powers, duties and
2obligations of the discontinued taxing district are assumed by
3another taxing district, the Tax Base of the discontinued
4taxing district shall be added to the Tax Base of the taxing
5district assuming such powers, duties and obligations.
6    If two or more taxing districts in existence on July 1,
71979, or a successor or successors thereto shall consolidate
8into one taxing district, the Tax Base of such consolidated
9taxing district shall be the sum of the Tax Bases of each of
10the taxing districts which have consolidated.
11    If a single taxing district in existence on July 1, 1979,
12or a successor or successors thereto shall be divided into two
13or more separate taxing districts, the tax base of the taxing
14district so divided shall be allocated to each of the resulting
15taxing districts in proportion to the then current equalized
16assessed value of each resulting taxing district.
17    If a portion of the territory of a taxing district is
18disconnected and annexed to another taxing district of the same
19type, the Tax Base of the taxing district from which
20disconnection was made shall be reduced in proportion to the
21then current equalized assessed value of the disconnected
22territory as compared with the then current equalized assessed
23value within the entire territory of the taxing district prior
24to disconnection, and the amount of such reduction shall be
25added to the Tax Base of the taxing district to which
26annexation is made.

 

 

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1    If a community college district is created after July 1,
21979, beginning on the effective date of this amendatory Act of
31995, its Tax Base shall be 3.5% of the sum of the personal
4property tax collected for the 1977 tax year within the
5territorial jurisdiction of the district.
6    The amounts allocated and paid to taxing districts pursuant
7to the provisions of this amendatory Act of 1979 shall be
8deemed to be substitute revenues for the revenues derived from
9taxes imposed on personal property pursuant to the provisions
10of the "Revenue Act of 1939" or "An Act for the assessment and
11taxation of private car line companies", approved July 22,
121943, as amended, or Section 414 of the Illinois Insurance
13Code, prior to the abolition of such taxes and shall be used
14for the same purposes as the revenues derived from ad valorem
15taxes on real estate.
16    Monies received by any taxing districts from the Personal
17Property Tax Replacement Fund shall be first applied toward
18payment of the proportionate amount of debt service which was
19previously levied and collected from extensions against
20personal property on bonds outstanding as of December 31, 1978
21and next applied toward payment of the proportionate share of
22the pension or retirement obligations of the taxing district
23which were previously levied and collected from extensions
24against personal property. For each such outstanding bond
25issue, the County Clerk shall determine the percentage of the
26debt service which was collected from extensions against real

 

 

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1estate in the taxing district for 1978 taxes payable in 1979,
2as related to the total amount of such levies and collections
3from extensions against both real and personal property. For
41979 and subsequent years' taxes, the County Clerk shall levy
5and extend taxes against the real estate of each taxing
6district which will yield the said percentage or percentages of
7the debt service on such outstanding bonds. The balance of the
8amount necessary to fully pay such debt service shall
9constitute a first and prior lien upon the monies received by
10each such taxing district through the Personal Property Tax
11Replacement Fund and shall be first applied or set aside for
12such purpose. In counties having fewer than 3,000,000
13inhabitants, the amendments to this paragraph as made by this
14amendatory Act of 1980 shall be first applicable to 1980 taxes
15to be collected in 1981.
16(Source: P.A. 96-45, eff. 7-15-09; 97-72, eff. 7-1-11; 97-619,
17eff. 11-14-11.)